The Figure Given Below Represents the Production Possibilities Curves [PPC]

question 43

Multiple Choice

The figure given below represents the production possibilities curves [PPC] of a country producing wine and cars.Figure 2.1

-Refer to Figure 2.1. Identify the correct statement.

• A)If the country is at point A and is using all of its resources, point D is unattainable.
• B)If the country is at point A and is using all of its resources, Point C is unattainable.
• C)If the country is at point B and is using all of its resources, there will be an underutilization of resources at point C.
• D)If the country is at point C, point B is unattainable.
• E)If the country is at point B, it will not move.

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Definitions:

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Labour Hour

A measure of the amount of work performed by a worker in one hour.

Services

Activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

Goods

Tangible items that are produced, bought, or sold.